ESGU - ETF AI Analysis

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iShares ESG Aware MSCI USA ETF (ESGU)

Rating:74Outperform

Price Target:―

The iShares ESG Aware MSCI USA ETF (ESGU) benefits from strong contributions by top holdings like Microsoft and Alphabet, which are supported by robust financial performance and strategic growth in areas like AI and cloud services. Apple also adds strength with its profitability and focus on emerging markets, though its high valuation poses some risks. However, weaker holdings like Eli Lilly and JPMorgan Chase, which face challenges in cash flow and leverage, slightly temper the overall rating. Investors should also note the ETF's concentration in large-cap tech stocks, which could increase exposure to sector-specific risks.

Positive Factors

Strong Top Holdings

Several key positions, such as Nvidia, Microsoft, and Alphabet, have delivered strong year-to-date performance, driving the ETF's returns.

Low Expense Ratio

The fund's expense ratio of 0.15% is relatively low, making it cost-efficient for investors.

Sector Diversification

The ETF is spread across multiple sectors, including technology, financials, and health care, reducing reliance on any single industry.

Negative Factors

High Technology Exposure

With nearly 37% of the portfolio in technology, the fund is heavily reliant on the performance of this sector.

Limited Geographic Exposure

The ETF is overwhelmingly focused on U.S. companies, offering minimal exposure to international markets.

Mixed Performance Among Holdings

While some top holdings have performed strongly, others like Amazon and Eli Lilly have shown weaker year-to-date gains, potentially dragging on overall returns.

ESGU vs. SPDR S&P 500 ETF (SPY)

AUM15.90B

RegionNorth America

Expense Ratio0.15%

Beta1.01

IssueriShares

Inception DateDec 01, 2016

Dividend Yield0.98%

Asset ClassEquity

Index TrackedMSCI USA Extended ESG Focus Index

Share Statistics

EPS (TTM)N/A

Shares OutstandingN/A

10 Day Avg. Volume533,577

30 Day Avg. Volume614,357

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)N/A

P/FCF RatioN/A

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

177.42

Price Target Upside― Downside

Rating ConsensusModerate Buy

Number of Analyst Covering279

EPS Forecast (FY)N/A

Revenue Forecast (FY)N/A

ESGU Summary

The iShares ESG Aware MSCI USA ETF (ESGU) is an investment fund that focuses on U.S. companies while prioritizing environmental, social, and governance (ESG) factors. It includes well-known companies like Apple and Nvidia, and avoids industries like tobacco or controversial weapons. This ETF is a good choice for investors who want broad exposure to the U.S. stock market while supporting sustainable and socially responsible practices. However, since it heavily invests in sectors like technology, its performance can be influenced by trends in that industry.

How much will it cost me?The iShares ESG Aware MSCI USA ETF (ESGU) has an expense ratio of 0.15%, meaning you’ll pay $1.50 per year for every $1,000 invested. This is lower than average because it’s passively managed, tracking an index rather than relying on active stock picking.

What would affect this ETF?The ESGU ETF, with its strong focus on technology and ESG principles, could benefit from continued innovation in tech and increasing investor demand for sustainable investments. However, it may face challenges from regulatory changes affecting ESG criteria or economic slowdowns impacting the U.S. equity market, particularly in sectors like technology and consumer cyclical. Its reliance on top holdings like Nvidia, Apple, and Microsoft also makes it sensitive to performance fluctuations in these companies.

ESGU Top 10 Holdings

The ESGU ETF leans heavily into technology, with giants like Nvidia and Apple driving much of its performance. Nvidia’s focus on AI and data centers has kept it in the spotlight, though recent mixed signals suggest some cooling. Apple remains steady, buoyed by its services growth, while Microsoft’s cloud and AI ambitions face short-term headwinds. Alphabet shines with strong profitability and AI investments, giving the fund a boost. Tesla’s recent rally adds momentum, but Meta’s struggles with expense management and regulatory concerns weigh on the tech-heavy portfolio. Overall, the fund’s U.S.-centric positioning reflects a clear tilt toward innovation and growth.

Name	Company Name	Weight %	Market Value	Market Cap	Yearly Gain	Overall Rating
NVDA	Nvidia	7.57%	$1.21B	$4.45T	40.04%	76 Outperform
AAPL	Apple	6.26%	$997.95M	$3.82T	13.12%	79 Outperform
MSFT	Microsoft	5.31%	$846.66M	$3.41T	7.56%	79 Outperform
GOOG	Alphabet Class C	4.14%	$659.93M	$4.06T	70.73%	82 Outperform
AMZN	Amazon	3.72%	$592.51M	$2.53T	7.94%	71 Outperform
AVGO	Broadcom	2.59%	$412.14M	$1.61T	49.52%	76 Outperform
META	Meta Platforms	2.10%	$334.51M	$1.55T	1.55%	76 Outperform
TSLA	Tesla	2.06%	$328.26M	$1.46T	5.98%	73 Outperform
LLY	Eli Lilly & Co	1.37%	$218.29M	$1.01T	36.35%	72 Outperform
JPM	JPMorgan Chase	1.35%	$215.12M	$838.10B	21.63%	72 Outperform

ESGU Technical Analysis

Technical Analysis Sentiment

Positive

Last Price―

Price Trends

50DMA

148.58

Positive

100DMA

146.49

Positive

200DMA

137.72

Positive

Market Momentum

MACD

0.71

Positive

RSI

56.04

Neutral

STOCH

67.77

Neutral

Evaluating momentum and price trends is crucial in ETF analysis to make informed investment decisions. For ESGU, the sentiment is Positive. The current price of undefined is equal to the 20-day moving average (MA) of 150.08, equal to the 50-day MA of 148.58, and equal to the 200-day MA of 137.72, indicating a bullish trend. The MACD of 0.71 indicates Positive momentum. The RSI at 56.04 is Neutral, neither overbought nor oversold. The STOCH value of 67.77 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ESGU.

ESGU Peer Comparison

Comparison Results

Name	Price	Price Target	AUM	Expense Ratio	Overall Rating
ESGU	―	―	$15.90B	0.15%	―
VTI	―	―	$585.18B	0.03%	―
VIG	―	―	$103.74B	0.05%	―
ITOT	―	―	$82.17B	0.03%	―
QUAL	―	―	$49.14B	0.15%	―
DFAC	―	―	$41.44B	0.17%	―

Performance Comparison

ESGU

iShares ESG Aware MSCI USA ETF

150.90

20.65

15.85%

VTI

Vanguard Total Stock Market ETF

―

VIG

Vanguard Dividend Appreciation ETF

―

ITOT

iShares Core S&P Total U.S. Stock Market ETF

―

QUAL

iShares MSCI USA Quality Factor ETF

―

DFAC

Dimensional U.S. Core Equity 2 ETF

―

Glossary

BuyAn ETF rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF is likely to deliver higher returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldAn ETF rated as a "Hold" s expected to perform in line with the overall market or a specific benchmark. This rating indicates that the ETF is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellAn ETF rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the ETF may deliver lower returns compared to other ETFs in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst ETF Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in ETFs carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: ―

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